IDEAS home Printed from https://ideas.repec.org/a/eee/phsmap/v387y2008i19p4973-4981.html
   My bibliography  Save this article

Wealth networks with local redistribution

Author

Listed:
  • Kim, Sunggon
  • Kim, Gwang Il
  • Lee, Geymin

Abstract

We propose a growing network model of the distribution of wealth in a society with local redistribution. Individuals, represented by nodes in the model, provide goods and services to one of their neighbors and they simultaneously produce wealth using goods and services received from their neighbors. A proportion of the wealth produced by a node is redistributed to its neighbors as a reward for the received goods and services. Nodes have different ability to produce wealth. We analyze the interaction between the wealth accumulation process and the structure of the network, and analyze also how the interaction is affected by the redistribution of wealth. It is investigated how rich nodes attract the individuals entering the network in this model. Under a reasonable distribution of ability, simulation result shows that the distribution of degree, i.e. number of neighbors of a node, is scale-free, and that the wealth distribution for the middle class is a log-normal distribution, while for the richest it shows a power-law behavior. We also show that the local redistribution of wealth has a significant effect on the distribution of both degree and wealth.

Suggested Citation

  • Kim, Sunggon & Kim, Gwang Il & Lee, Geymin, 2008. "Wealth networks with local redistribution," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(19), pages 4973-4981.
    • Handle: RePEc:eee:phsmap:v:387:y:2008:i:19:p:4973-4981
    DOI: 10.1016/j.physa.2008.04.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378437108003671
    Download Restriction: Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000
    File URL: https://libkey.io/10.1016/j.physa.2008.04.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:phsmap:v:387:y:2008:i:19:p:4973-4981. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.